Work arrangements provide a great opportunity by enabling more efficient use of resources and flexibility for both businesses and workers. But they also entail risks, such as increased income volatility and possible deterioration in employment conditions, particularly access to social protection. Additionally, new digital workers are more likely to be freelancers than formal employees. With the pandemic, jobs have picked up pace across digital platforms over the past year. In Latin America, platform work coexists with other traditional and non-traditional forms of employment. In some cases, these are workers with formal jobs, who earn additional income through platforms, while others are self-employed.
Recent growth in platform work compels us to rethink social protection institutions and adapt them to the characteristics of today’s labor market. Access to social benefits by platform workers poses challenges similar to those posed by traditional independent employment coverage. In this sense, technology could become an ally, by facilitating logging of activities and payment of obligations. The working conditions of this type of jobs play a pivotal role because in some cases working hours are often long and unpredictable. About half of digital platform workers earn less than two dollars per hour. Digital platforms are here to stay, and they create job opportunities, especially for young people. Companies now have access to a broad, flexible and diverse worker base, while expanding their customer base. The challenge is to foster constructive dialogue between authorities, employers and workers to define regulations tailored to this new reality that improve the quality of life of the population and boost competitiveness in the region.